MEXICO CITY, Feb. 2 (Xinhua) -- Cutting crime in Mexico could encourage more investment, leading to higher economic growth, a private sector think tank said on Sunday.

"That is why it is indispensable to guarantee security," the Private Sector Center for Economic Studies (CEESP) said in its weekly report.

If investment does not increase, it is unlikely that the country's economic situation will see an improvement this year, said the center, which is part of the Business Coordinating Council (CCE), Mexico's largest business confederation.

The center called on President Andres Manuel Lopez Obrador to prioritize measures to "drastically" reduce violent crime and extortion to promote growth and wellbeing.

According to the latest official figures, Mexico's gross domestic product (GDP) shrank 0.1 percent in 2019, contracting for the first time in a decade amid rising violent crime.

Latin America's No. 2 economy, after Brazil, Mexico could grow between 0.8 and 1.8 percent in 2020, the central Bank of Mexico (Banxico) has forecast.

In 2018, Mexico's GDP expanded by 2.1 percent.